EU raises growth outlook; GDP forecast to rise 1.5%

Brussels

THE European Commission raised its euro-area growth forecast as the impact of a weaker euro and unprecedented monetary stimulus help the economy overcome pressure on confidence from the continuing crisis in Greece.

Gross domestic product (GDP) in the 19-nation currency bloc is forecast to increase 1.5 per cent this year, up from 1.3 per cent in February, according to the commission, the European Union executive in Brussels.

It slashed its growth projections for Greece at a time when the cash-strapped country is struggling to persuade its euro-area partners to help pay its bills.

"The legacy of the crisis will continue to be felt for years to come," Marco Buti, the head of the commission's economics department, said in the report. "Will the economy be able to generate …